Mitchell says symptoms caused with this code are harsh shift engagements, which I do feel from time to time.

My question is which came first, the transmission slip or the faulty input signal? I know the faulty signal could cause harsh shifts, but could harsh shifts from the trans going out cause the faulty signal? basically I want to know if I have a bad sensor or a slipping transmission.

I would have to say the sensor failure will be the cause of your trouble.
I had a 02 jetta a while back the guy drove for 2 years with the check engine light on and a harsh shift. We fixed that one with a new airflow sensor and a few other vacuum hoses and minor stuff and the trans worked perfectly after that. The guy drove it that way casue he thought the trans was going to quit so he ignored the check engine light. I would think the tss isnt very exspensive.

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